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Room and Board is considering two capital structures that have a break-even EBIT of $32,400. The all-equity capital structure would have 18,400 shares outstanding. The
Room and Board is considering two capital structures that have a break-even EBIT of $32,400. The all-equity capital structure would have 18,400 shares outstanding. The levered capital structure would have 13,600 shares of stock and $99,000 of debt. What is the interest rate on the debt? Ignore taxes.
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8.94%
9.76%
8.11%
8.54%
7.66%
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